@Wilba32 , I'm idly wondering what an MSB Board authorised...

@Wilba32 , I'm idly wondering what an MSB Board authorised public announcement like:

" Mesoblast is in active discussions to complete a refinancing of its existing senior secured debt facility by calendar year end "
(MSB, Appendix 4CQtrly Rpt: https://investorsmedia.mesoblast.com/static-files/9a6eaa3a-740e-4a39-9dba-431020ae176c)

might do to a short-seller's position-close timing thinking. I think it most likely that it would reduce that timeframe, i.e. time to close out all held positions, to a maximum of 8 weeks from today.

IMO, there is simply no reasonable basis for shorts anticipating that MSB will not formally document a refinanced senior debt arrangement effective by 31 December 2021. As a fact, the MSB Board has delivered on prior negotiations of each of seven (7) senior debt facility amendments since 2018, the last having completed last quarter. Just as importantly, MSB's IP assets held and licensure discussions in US etc have advanced significantly in the interim. That is extremely clear, and on public record.

If that were not enough, there's no reasonable basis I can see for short-sellers to assume their ability to continue to hold short positions will improve in the short-term - say, in the next 5 months. Reality is that, with the last successfully negotiated interest-only extension to the 'Amortization Date' and commencement of any principle repayments, MSB can continue to manage the senior debt part of its cash "burn" at the current rate right up to March 2022. So, the Board really has a lot more than 8 weeks before it has to do anything.

On the other hand, the share/ stock price on ASX or NASDAQ may go through the roof at any moment in the next 8 weeks. Were it to do so, IMO that would only make the MSB Board's job in refinancing senior debt that much easier.

But lets assume that every single one of these shorts isn't a naked shorter & is either fully-hedged or has completely reliable coverage under buy-stop orders. No problem then for those fellas, eh? But what happens when every single one of the buy-stop orders are triggered at the same time?

We've talked about this...it's very sad for those who didn't close in time. What to do, eh?

All my thoughts only, of course. Not advice. Have a great weekend. DYOR etc.